Published: Tuesday, October 1, 2013 at 4:02 p.m.

Last Modified: Tuesday, October 1, 2013 at 4:02 p.m.

Florida's top elected officials scrambled to try to roll back big flood insurance rate hikes Tuesday as insurance companies began enforcing the new rules.

Congress missed the Oct. 1 deadline to stop the premium increases from becoming law and many state leaders are concerned that the new flood rates could be a major drag on the real estate industry.

The state has 37 percent of the nation's flood insurance policies, including 109,000 in Sarasota and Manatee counties. Roughly 30,000 local flood policies are in line for major increases under reforms approved last year to the National Flood Insurance Program.

Surrounded by real estate agents, homeowners and local officials, Gov. Rick Scott held an event in Clearwater on Tuesday during which he asked President Barack Obama to intervene and "take immediate action to prevent these flood insurance rate hikes on Florida's families, and families across the state."

Florida's U.S. senators — Republican Marco Rubio and Democrat Bill Nelson — also called a press conference Tuesday, joining with lawmakers from other states where flood insurance is a major issue. The group urged quick action to stop the new rates from taking effect.

"These massive increases are highly disruptive to our real estate market and they're highly disruptive to the lives of everyday people," Rubio said. "And so that's why you see this bipartisan effort to look at what we can do in the short term to prevent these devastating increases."

But for now, those who administer the National Flood Insurance Program say their hands are tied.

Until Congress acts "we have to go forward with the law the way it is," said Dolores Glass, a spokeswoman for Wright National Flood Insurance, the largest company that contracts with the federal government to write federally backed flood policies.

The new flood insurance rates could have immediate impacts on home sales.

Many older homes that were built before the federal government began requiring properties to be elevated above 100-year flood levels will be significantly more expensive to insure, especially when the property changes hands.

Most of the rate increases will be phased in, with property owners paying up to 25 percent more annually until the government decides rates are adequate.

But new owners must pay the "full risk rate," which could be exponentially higher than current premiums.

A fact sheet from the federal government indicates that a home with $250,000 worth of insurance that sits four feet below where a flood is expected every 100 years will now cost nearly 700 percent more to insure, or $9,500 instead of $1,410.

Insurance agents say many homes in places such as Siesta Key, Anna Maria Island and other waterfront communities are likely to be impacted by the new rates, making them more difficult to sell.

"When people go to sell it's going to really affect those particular homes and businesses because of the sticker shock," said Sarasota insurance agent Keith MacFarlane.

Federal lawmakers approved changes to National Florida Insurance Program — which writes nearly all flood insurance policies in the U.S. — last year after claims from Hurricane Katrina and other flood events drove the program deep into debt.

Critics say flood rates have been too cheap for risky properties and that the system is financially unsound.

Many Florida officials worry about the impact on homeowners and the economy from higher rates. But whether they can roll back the increases is unclear.

Congress is completely consumed with the battle over health care reform and the budget, which forced a government shutdown Tuesday.

<p>Florida's top elected officials scrambled to try to roll back big flood insurance rate hikes Tuesday as insurance companies began enforcing the new rules.</p><p>Congress missed the Oct. 1 deadline to stop the premium increases from becoming law and many state leaders are concerned that the new flood rates could be a major drag on the real estate industry. </p><p>The state has 37 percent of the nation's flood insurance policies, including 109,000 in Sarasota and Manatee counties. Roughly 30,000 local flood policies are in line for major increases under reforms approved last year to the National Flood Insurance Program.</p><p>Surrounded by real estate agents, homeowners and local officials, Gov. Rick Scott held an event in Clearwater on Tuesday during which he asked President Barack Obama to intervene and "take immediate action to prevent these flood insurance rate hikes on Florida's families, and families across the state."</p><p>Florida's U.S. senators — Republican Marco Rubio and Democrat Bill Nelson — also called a press conference Tuesday, joining with lawmakers from other states where flood insurance is a major issue. The group urged quick action to stop the new rates from taking effect.</p><p>"These massive increases are highly disruptive to our real estate market and they're highly disruptive to the lives of everyday people," Rubio said. "And so that's why you see this bipartisan effort to look at what we can do in the short term to prevent these devastating increases."</p><p>But for now, those who administer the National Flood Insurance Program say their hands are tied.</p><p>Until Congress acts "we have to go forward with the law the way it is," said Dolores Glass, a spokeswoman for Wright National Flood Insurance, the largest company that contracts with the federal government to write federally backed flood policies.</p><p>The new flood insurance rates could have immediate impacts on home sales.</p><p>Many older homes that were built before the federal government began requiring properties to be elevated above 100-year flood levels will be significantly more expensive to insure, especially when the property changes hands.</p><p>Most of the rate increases will be phased in, with property owners paying up to 25 percent more annually until the government decides rates are adequate.</p><p>But new owners must pay the "full risk rate," which could be exponentially higher than current premiums.</p><p>A fact sheet from the federal government indicates that a home with $250,000 worth of insurance that sits four feet below where a flood is expected every 100 years will now cost nearly 700 percent more to insure, or $9,500 instead of $1,410.</p><p>Insurance agents say many homes in places such as Siesta Key, Anna Maria Island and other waterfront communities are likely to be impacted by the new rates, making them more difficult to sell.</p><p>"When people go to sell it's going to really affect those particular homes and businesses because of the sticker shock," said Sarasota insurance agent Keith MacFarlane.</p><p>Federal lawmakers approved changes to National Florida Insurance Program — which writes nearly all flood insurance policies in the U.S. — last year after claims from Hurricane Katrina and other flood events drove the program deep into debt.</p><p>Critics say flood rates have been too cheap for risky properties and that the system is financially unsound.</p><p>Many Florida officials worry about the impact on homeowners and the economy from higher rates. But whether they can roll back the increases is unclear.</p><p>Congress is completely consumed with the battle over health care reform and the budget, which forced a government shutdown Tuesday.</p><p>"It has to come from Congress," Glass said.</p>